New Construction Loan For Short Term Rental

[Chris Anthony]

To clarify we are sellers not mortgage broker. We have a potential buyer of a lot in St Augustine, FL who would like to build a new single family short term rental. Property will be held in LLC. Looking for best options. Good credit. Good cash flow and equity upon completion. Do 80/90% of land 100% of construction loans exist? Or what programs can anyone suggest that would be best for this scenario. Thank you in advance for reading!

[Dominic Mazzarella]

Quote from @Chris Anthony:

To clarify we are sellers not mortgage broker. We have a potential buyer of a lot in St Augustine, FL who would like to build a new single family short term rental. Property will be held in LLC. Looking for best options. Good credit. Good cash flow and equity upon completion. Do 80/90% of land 100% of construction loans exist? Or what programs can anyone suggest that would be best for this scenario. Thank you in advance for reading!

Yes, there are lenders that will do 80-90% of land and 100% of construction, but it's usually through specialized construction loan programs or private lenders. Banks and credit unions might have lower-cost options, but they'll likely require more equity. You might also want to look into DSCR loans since it’s an STR. Have you considered reaching out to local lenders or brokers who specialize in new construction? They might have access to portfolio loan programs that fit your buyer’s situation.